Mary Alice McKenzie Named to Top CVPS Board Post; Three Vermonters Join Board
May 09 2006 - 12:06PM
Business Wire
Mary Alice McKenzie, a Burlington native and attorney, has been
named chair of the board of Central Vermont Public Service,
Vermont's largest electric company. "Mary Alice brings a wealth of
talent and a broad understanding of Vermont to the position," said
Fred Bertrand, who has stepped down as chairman and plans to retire
from the board in 2007. "The company is in excellent hands."
McKenzie's family has deep business roots in the Green Mountain
State. She formerly served as president and chief executive officer
of McKenzie of Vermont, a Burlington meat packing business. She
said her focus would be on maintaining CVPS's high levels of
customer service and reliability while overseeing the company's
financial restoration plan. The company's rates were reduced 2.75
percent last May, and a customer refund of $6.2 million was ordered
due to previous over-earnings. CVPS's credit rating was reduced to
junk bond status. "CVPS is an important economic tool for Vermont,
and it is imperative that CVPS's credit rating be restored within
the next few years," McKenzie said. "Given the tremendous decisions
that must be made about future power supplies, generation,
transmission and efficiency, that is important to the company, our
customers and the state. "That said, while the rate case decision
had a negative impact on the company, ultimately CVPS's financial
situation and restoration is our responsibility," McKenzie said.
"We've learned from the rate case that we must better communicate
with regulators on our key financial compliance assumptions, and we
are working hard to improve communications with them." McKenzie's
appointment is part of a broader reorganization of the board in the
wake of the sale of Catamount Energy, a subsidiary, and heralds a
renewed focus on the core Vermont electrical business. Beginning
this year, the company has reduced each director's pay by 10.5
percent. As part of the reorganization, the board accepted
resignations from Timothy Cobb of South Carolina and George
MacKenzie Jr. of Pennsylvania. Vermonters William Stenger, Bill
Sayre and Douglas Wacek have joined the board. Stenger, 57, is
president of Jay Peak Resort and a resident of Newport, Vt. Wacek,
54, is the president and CEO of the Union Mutual Insurance Group in
Montpelier, Vt. He is a certified public accountant and a resident
of Burlington, Vt. Sayre, 55, is president of Duncan Hermanson
Corp., a real estate investment company with holdings in Vermont
and New York. He is a resident of Bristol, Vt. Besides the board
restructuring, McKenzie said CVPS's plans to restore its financial
strength include: -- Securing a $25 million revolving credit
facility in October 2005; -- Making $2.7 million in 2006 budget
cuts, including a 10 percent cut in President Bob Young's salary,
and a 5 percent reduction in other officers' salaries, to offset
other cost increases. -- Selling Catamount Energy, providing funds
to buy back 18.3 percent of CVPS's common stock. -- Continuing the
Right Way to Work, a program that has identified more than $6
million in annual savings. -- Agreeing to purchase Rochester
Electric Light and Power, providing more than 900 new customers to
further spread the company's fixed costs. -- Investing
substantially in the core business and VELCO, with more than $40
million planned in 2006. CVPS, founded in 1929, is Vermont's
largest electric utility, serving more than 151,000 customers.
Forward-Looking Statements Statements contained in this report that
are not historical fact are forward-looking statements intended to
qualify for the safe-harbors from the liability established by the
Private Securities Litigation Reform Act of 1995. Statements made
that are not historical facts are forward-looking and, accordingly,
involve estimates, assumptions, risks and uncertainties that could
cause actual results or outcomes to differ materially from those
expressed in the forward-looking statements. Actual results will
depend, among other things, upon the actions of regulators,
performance of the Vermont Yankee nuclear power plant, effects of
and changes in weather and economic conditions, volatility in
wholesale electric markets and our ability to maintain our current
credit ratings. These and other risk factors are detailed in CV's
Securities and Exchange Commission filings. CV cannot predict the
outcome of any of these matters; accordingly, there can be no
assurance that such indicated results will be realized. Readers are
cautioned not to place undue reliance on these forward-looking
statements that speak only as of the date of this press release. CV
does not undertake any obligation to publicly release any revision
to these forward-looking statements to reflect events or
circumstances after the date of this press release.
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